Wisdom Engraced
Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us
A recent report by S&P Global has revealed that oil-producing African countries have increased their crude production quota, now accounting for 35% of newly discovered oil reserves in 2024. This is a substantial rise from just 7% in 2023.
According to the report, “In 2024, Africa accounted for 35% of the global discovered volumes, a significant increase from just 7% in 2023.” The report also noted that 60% of offshore Africa’s NFWs were drilled in frontier or immature basins.
For further information, read more details here
The Cote D’Ivoire Basin and the Orange Sub-basin accounted for 2.9 billion barrels of oil equivalent, with the Orange Sub-basin continuing to be an exploration hotspot. “Galp’s Mopane 1X discovery is the biggest discovery of the year globally and is of real interest due to being in shallower water than previous discoveries,” the report stated.
The top 10 newly discovered oil reserves accounted for approximately 60% of the total new finds, with the Orange Subbasin in Southwest Africa, the Central Arabian Province, and the Guyana Basin collectively contributing to more than half of the year’s discoveries.
The report also highlighted the focus on deepwater explorations, with drillers reaching a water depth of approximately 1,680 meters at the Mopane well. “Ultra-deepwater exploration will be a recurring theme, as seen in the Venus 1X well, which has a water depth of about 3,000 meters.
Nigeria, however, was notably absent from these recent findings, despite having oil reserves of 37.5 billion barrels. The lack of funding and investments has plagued the Nigerian oil sector in recent years.
For further information, read more details here
However, Shell’s planned $5 billion investment in the Bonga North Field and Chevron’s discovery of a new oil field in the Meji NW-1 well suggest that numbers from Nigeria could begin to emerge in the coming years. The Secretary-General of the Organisation of the Petroleum Exporting Countries, Mr. Haitham Al-Ghais, recently tasked Africa to unlock its proven oil of over 120 billion barrels.
According to the S&P Global report, the exploration landscape in 2025 is expected to be driven by high-impact wells, with over 35 wells scheduled globally. “High impact Wells will drive discovery and remain a key indicator of future trade flows in 2025,” the report stated.
The report also highlighted the importance of balancing exploration activity with transition and net-zero obligations. “As companies balance the challenges of portfolio optimization, transition, and net-zero obligations, the strategic targeting of both high-risk, high-reward prospects and proven basins will be crucial for sustaining the momentum of resource replenishment and ensuring the continued growth and vitality of the oil and gas sector.”
In conclusion, the report suggests that Africa, particularly the Orange Sub-basin and the Cote d’Ivoire Basin, will continue to play a significant role in the global oil and gas industry. While Nigeria has been absent from recent discoveries, investments and new discoveries suggest that the country may soon re-emerge as a key player in the industry.
“As we look to the future, it’s clear that Africa will continue to be a major player in the global oil and gas industry,” said the report. “With new discoveries and investments on the horizon, the continent is poised for significant growth and development in the years to come.
Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it.
Drop your comment in the section below, and don’t forget to share the post.
